State Printing House: HUF 401 dividend proposal to the General Meeting
State Printing House Plc has published its proposals today for the General Meeting to be held on 28 April. The Board of Directors proposes to the General Meeting the payment of HUF 596 million (HUF 401 per share) dividend out of the HUF 1,158 million net income. The proposals include the conversion of ‘B’ and ‘C’ series employee shares, the division of the par value of the Company’s ordinary shares with the ratio 1:10 and the approval of the guidelines of the share option programme.
The Board of Directors of State Printing House Plc proposes to the General Meeting to be held on 28 April 2008 the payment of HUF 401 dividend per ordinary share. The dividend for currently 11,100 pieces of treasury shares will be distributed to the shareholders proportionately. In accordance with these, HUF 785 EPS (51%) will be paid based on the HUF 1,158 net income of the Group in 2007. By paying fewer dividends than in the previous years, the Board of Directors would like to create further growth and the possible financial condition of future acquisitions. According to the invitation to the General Meeting, those shareholders can vote in this question who will be registered in the Register of Shares until 18 April 2008. In compliance with the proposal, State Printing House would start the dividend payment on 21 May 2008.
To strengthen the share turnover of State Printing House, the General Meeting proposals include the conversion of ‘B’ and ‘C’ series dividend preferential employee shares to ‘A’ series ordinary shares and their stock exchange listing, and the division of the par value of the Company’s ordinary shares with the ratio 1:10 (split) that is decreasing the ordinary shares’ par value by increasing their number simultaneously with the same ratio. The proposals do not affect the amount of share capital and do not modify the 2008 EPS forecasts of the Company (HUF 900 per share). By the conversion of employee shares, almost 6% more State Printing House shares will be listed on the stock exchange.
The AGM proposals include the approval of the guidelines of the share option programme as well. In the frame of the management incentive program’s proposal, 80,000 pieces of shares would be distributed to the senior officers defined by the Board of Directors in case the share price would continuously exceed the level of HUF 18,000, 21,000 and 25,000. Naturally, the number of pieces and the share prices will change with the same ratio after the approval of the split.
György Gyergyák General Manager commented:
‘According to the dividend policy defined previously, the Board of Directors may propose the payment of dividend which equals to maximum 80 per cent of the reached profit but considering our results and our market situation, the conditions for development are given. In accordance with this, the Board of Directors proposes that half of the profit should be spent on financing further growth.’
State Printing House Plc.